Al's has a positive net income and a marginal tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?

Name: Al's has a positive net income and a marginal tax rate of 34 percent.Given this,an increase in which one of the following will cause the operating cash flow to increase?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

an increase in depreciation will cause the operating cash flow to increase as it reduces the taxable income, thereby reducing the amount of taxes paid.

Al's Has a Positive Net Income and a Marginal Tax